WILLISTON, N.D., April 14 (Reuters) - Oil producer EOG
Resources Inc has the lion's share of an estimated 900
North Dakota wells waiting to be fracked, according to state
data, showing that even major oil titans are mothballing
operations while they hope for a rebound in oil prices.

For months the conventional wisdom in North Dakota's Bakken
shale formation had been that smaller producers with weak cash
flow comprised the bulk of that estimate.

While the estimate had been published monthly, it was not
clear until a Tuesday update from the state's Department of
Mineral Resources (DMR) who was dominating the list. Oilfield
service companies have aggressively sought the information,
hoping to drum up new business.

By late May, the number of wells waiting to be fracked is
expected to breach 1,000, DMR officials said, fueled largely by
cheap oil and a $5.3 billion industry tax break expected to hit
in June.

Oil producers have up to a year to frack the wells before
they must ask state officials to label them "temporarily
abandoned."

The fact that industry stalwarts like EOG are having to hold
off on fracking new wells shows how much low prices make the
remote Bakken far less economical compared to other U.S. shale
plays.

Prices to transport oil from North Dakota to the U.S. Gulf
Coast or coastal refineries add in some cases nearly $10 per
barrel to the cost of crude, a steep price not faced for
transport from Texas wells, which also are connected to a
much-larger pipeline network.
Continued...